RBS may Cut Credit Line to Mallya’s Beer Biz in Europe

The Economic Times - - Economy & Companies -

Be­lea­guered busi­ness­man Vi­jay Mallya’s trou­bles with lenders do not seem to be limited to In­dia, with global bank­ing ma­jor RBS plan­ning to ter­mi­nate next month a credit line and all other bank­ing ser­vices pro­vided to his Euro­pean beer ven­ture. This has forced King­fisher Beer Europe, owned by Mallya through a com­plex web of en­ti­ties, to look for al­ter­na­tive av­enues to re­place the credit line and other bank­ing fa­cil­i­ties pro­vided by RBS.

Mallya-led UB Group runs its over­seas brew­ery busi­ness through Cal­i­for­nia-based Men­do­cino Brew­ing Com­pany, which sells a num­ber of beer brands in­clud­ing

LON­DON/WASH­ING­TON

King­fisher in the US, while oper­a­tions in other coun­tries are con­ducted through wholly-owned sub­sidiary United Brew­eries In­ter­na­tional (UK) and step-down unit King­fisher Beer Europe (KBEL). Men­do­cino has Mr Mallya as its chair­man and it is owned by his UB Group through a com­plex share­hold­ing struc­ture.

He has tried to keep the for­eign oper­a­tions sep­a­rate from his trou­bled ven­tures in In­dia, where a ma­jor con­tro­versy has bro­ken out ever since he left the country amid grow­ing clam­our for re­cov­ery of dues to­talling over .₹ 9,000 crore of the long-grounded King­fisher Air­lines. — PTI

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.